Budgeting & Execution Process (PPBE), business and finance homework help
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STUDENT 1: Kaitlin
Planning, Programming, Budgeting & Execution Process (PPBE) are the four phases of the resource allocation process. “The PPBE process is the primary Resource Allocation Process (RAP) of DoD. It is an annual cyclical process to determine Department funding requirements and to allocate resources to satisfy those requirements. It is one of three major decision support systems for defense acquisition along with Joint Capabilities Integration and Development System (JCIDS) and the Defense Acquisition System. The primary purpose of the PPBE process is to allocate resources within the Department of Defense. (“Planning, Programming, Budgeting & Execution Process (PPBE) [ACQuipedia],” n.d.)” Within the acquisition community, it is important for program managers and their staffs to be aware of the nature and timing of each of the events in the PPBE process, since they may be called upon to provide critical information that could be important to program funding and success. While the acquisition process is “event driven”, the PPBE process is “calendar driven”; this difference can result in timing issues for the acquisition community.
“The defense budget process has three main phases. The first phase is preparation of a budget request by the Executive Branch. The second part of the process is congressional consideration. The basic process has three phases: the budget resolution, the defense authorization bill, and defense related appropriations bills. The final part of the process is the budget execution stage. After budget authority is provided by Congress, the DOD may obligate funds to acquire goods and services.(Tyszkiewicz & Daggett, n.d.)”We concern ourselves with this process because this is how our budget is determined and without a budget we can’t set contracts or buy material.
Planning, Programming, Budgeting & Execution Process (PPBE) [ACQuipedia]. (n.d.). Retrieved from https://dap.dau.mil/acquipedia/Pages/ArticleDetail…
Tyszkiewicz, M. T., & Daggett, S. (n.d.). A Defense Budget Primer. Retrieved from https://fas.org/sgp/crs/natsec/RL30002.pdf
STUDENT 2: Luis
1) Identify and describe the the four phases of the resource allocation process and relate why they are important in the acquisition process.
Phase 1: Planning, Programming, Budgeting, and Execution Process. According to the Introduction To Defense Acquisition Management publication, the PPBE process is unique to the Department of Defense. PPBE is a annual cycle that produces the Defense Planning and Programming Guidance, and a Program Objectives Memorandum and Budget Estimate Submission for each military department, defense agency and selected other agencies/offices, and finally the DOD portion of the President’s annual budget submission to Congress. (Brown,2010)
Phase 2: Enactment. This is where congress accepts the budget proposal presented by the President and puts it through its own system of reviews and changes. It’s important to realize that Congress has responsibility or legal obligation to enact any of the requests outlined in the Presidents budget proposal.
Phase 3: Apportionment. During the apportionment phase, funds are actually being allocated and provided to the DOD. This occurs once the Congress have passed their budget proposal and the President has signed it into law.
Phase 4: Execution. Last but not least, this part of the phase is the obligation and execution of the funding provided to the DOD via contracts and paying salaries.
2) Explain the three major stages of the defense budget process. Why do we concern ourselves with this process?
According to DODworkshops.org, The overall process has three fundamental phases: formulation; subsequent actions by Congress and the President to provide a legally executable budget; and actual execution. The first phase includes every agency within the DOD (and other agencies with defense related spending) preparing budget requests and forwarding it through the DOD and to the President for final review and approval. Once the President has approved his executive budget proposal, it is sent to Congress and leads into the second phase. At this point Congress will hold its own hearing and ask its own question via committees and subcommittees in both the house and the senate in order to get a clear understanding and implications of the upcoming budget. The Congress has no responsibility nor any legal obligation to fulfill any request outlined the in the budget proposal submitted by the President. Once the congress has passed a budget authorization, it is then forwarded to the President for review, approval, or veto. Once approved and signed into law, the funding is appropriated to the defense department. The funding is then obligated or spent via contracts or things such as payroll and other administrative expenses. It’s extremely important for everyone in the acquisition realm to familiarize themselves with this process to ensure decisions are being made appropriately at each and every level.
Brown, B. (2010). Introduction to defense acquisition management. Fort Belvoir, VA: Defense Acquisition University Press. Retrieved 11 July 2017 from www.dtic.mil/get-tr-doc/pdf?AD=ADA606328.
The four phases to the resource allocation process are:
- Planning, Programming, Budgeting, and Execution (PPBE) – “this process produces the DOD portion of the President’s national budget” (Brown, 2010) budget submission to Congress. The PPBE shows what the DOD needs for the annual budget and the amounts that are needed for major programs that can require funding for up to 5 years out.
- Enactment – “the process through which Congress reviews the President’s budget, conducts hearings, and passes legislation” (Brown, 2010). This part of the process starts in early February (executive branches submission to Congress) and ends with the signing of the yearly authorization and appropriation bills. This was not completed until May 2017 for the 2017 fiscal year. The government operated under continuing resolutions from 1 October 2016 until the completion in May 2017. This leaves the agencies with 4 months to plan and spend the final annual budget.
- Apportionment – This phase of the process is where Office of Management and Budget (OMB) sends the funds, that were just approved, to the agencies for their use. For DOD, the money flows from OMB to DOD. DOD accepts those funds through the Under Secretary of Defense (Comptroller). From there it is dispersed to the branch of service and other defense agencies.
- Execution – This phase of the process is where the funds are spent. Programs are funded and contracts are awarded creating “obligations” so the needs of DOD can be met. Funds are considered to be “expended” when the payments are made.
The three major stages of the defense budget process are:
- Preparation – This is known as “Planning, Programming, and Budgeting System (PBS)” (Tyszkiewicz & Daggett, 1998). This part of the process is where the Department of Defense submits a budget to the Office of Management and Budget that is submitted by the Executive Branch to Congress.
- Congressional Consideration – This part of the process is where Congress performs the “budget resolution, the defense authorization bill, and defense related appropriations bills” (Tyszkiewicz & Daggett, 1998). Congress basically combs over the budget request and approves those portions that they feel are appropriate.
- Execution – This is the final part of the three stages to the Department of Defense budget. The Department of Defense at this point uses the appropriated funds for those programs, goods and services that it needs to sustain operations for the next fiscal year.
We need to be concerned with this process because it is how the Department of Defense and the agencies assigned to it receive their funding to operate annually. Any delay in the process can mean sequestration. For the Department of Defense this is a partial closure of the department that is considered to be non-essential.
Brown, Bradford. (2010). Introduction to defense acquisition management: Tenth addition. Fort Belvoir, VA: The Defense Acquisition University Press
Tyszkiewicz, M. T., & Daggett, S. (1998). CRS report for congress: A defense budget primer. Washington D.C.: Library of Congress.
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